Currency trading in London in the 1980's
In the 1980's the London currency market was dominated by hundreds of forex brokerages.
See the video clip made in 1986 - A Billion Dollars a day. That pales into comparison now as we are more likely near 3 trillion Dollars in the spot market alone with London retaining the dominant global role.
See the video here
Having started my forex trading career in the late 1980's I have seen vast changes in the industry over the years. This is a nostalgic look back at trading 3 pip spreads with 2 phones at each year at a time when information was not as vast as the information overload we have today in a high tech era where the Internet can transmit news in a second across the globe.
In the wake of the recent currency movements earlier this month when the CHF appreciated 30% in a single day, this video certainly illustrates a poignant truth that hasn't changed much over the last 3 decades in currency trading. in fast moving markets it is usually the under capitalized broker that may get caught in a liquidity crisis. When Sterling crashed out of the ERM again it was the brokerages that got hurt the most and the capitalized banks that could take the punches and somehow live to tell the tale.
Pieter Bergli - DeLoren Trust Holdings
Currency markets education
Disclaimer - U.S. Government Required Disclaimer - Commodity Futures Trading Commission
Futures and Options trading involves risks of losses. No representation is being made that any reader and account will or is likely to achieve profits or losses similar to those that are being discussed on this blog http://forexeducationperspective.blogspot.com/. The past performance of any trading system or methodology discussed is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
All trades, patterns, charts, systems, etc., discussed in this blog http://forexeducationperspective.blogspot.com/ are for educative and illustrative purposes only and not to be construed as specific advisory recommendations for actual trades. Disclaimer - http://forexeducationperspective.blogspot.com/
